ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 1645

with committee amendments

STATE OF NEW JERSEY

DATED: JUNE 5, 2008

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 1645 (1R), with committee amendments.

      The bill, as amended, professionalizes the purchasing functions in counties, municipalities, and other local units governed by the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.) by requiring most units of local government to employ at least one qualified purchasing agent in their contracting unit.  This does not necessarily require the hiring of a new employee; rather, it mandates that one employee have the training, State certification and authority to perform the duties of a qualified purchasing agent.

      This requirement will commence within three years of the bill’s enactment, unless that time frame is extended by the Director of the Division of Local Government Services.  The bill empowers the director to extend the deadline: if (1) there are not a sufficient number of courses available, which courses are necessary in order for individuals to become certified as “qualified purchasing agents,” or (2) in response to a contracting unit’s request.  Contracting units with annual budgets below $2,500,000 and contracting units that can demonstrate that they engage in minimal purchasing activity, will be exempt from the requirement to retain a qualified purchasing agent.

      The bill provides direction to the Director of the Division of Local Government Services for the establishment of criteria to certify individuals as “qualified purchasing agents.”  Criteria will include: United States citizenship, a high school diploma or equivalency, two years of post-high school education or two years of public procurement experience, successful completion of a series of courses in public procurement, and successful passage of a State qualifying exam.  Individuals who are certified municipal finance officers, certified county finance officers, certified county purchasing officers, or who have been full time purchasing agents continuously for at least three years could sit for the exam without having to complete the courses otherwise required.

      After passing the exam, and payment of a fee, the director will issue an individual a “qualified purchasing agent certificate.”  A certificate will be good for three years and can be renewed if the holder fulfills continuing education requirements.  The bill exempts current holders of qualified purchasing agent certificates from having to take the exam but requires them to adhere to the bill’s renewal requirements.  Certified school business administrators will be exempt from the course and exam requirements.

      The bill empowers the director to discipline certificate holders who engage in dishonest practices or who do not properly abide by the procurement laws.  It also authorizes penalties for local officials who fail to abide by the provisions of the bill. 

FISCAL IMPACT:

      This bill was not certified as requiring a fiscal note.

COMMITTEE AMENDMENTS:

      The committee amended section 3 of the bill to incorporate numerous technical and clarifying amendments.

        Amendments to subsection a. clarify that a governing body must designate an individual as its purchasing agent and that individual must be a qualified purchasing agent.  Amendments to this subsection also clarify that contracting units are exempt from this requirement if they have annual budgets below $2,500,000 or can demonstrate that they engage in minimal purchasing activity.

      Amendments to subsection b. provide that the courses in public procurement should be offered during normal business hours and over the Internet.

      Amendments adding a new subsection c. are technical amendments needed to incorporate a provision of law (P.L.2007, c.332, s.1) that was not incorporated into the bill at the time the bill was introduced.

      Amendments adding paragraph (3) to subsection d. detail procedures for a certificate holder who has allowed a certificate to expire.  This provision allows for renewal of the certificate if application is made within six months of the expiration date.

      Amendments adding subsection (2) to subsection e. exempt certified school business administrators from the course and examination requirements.

      Amendments to paragraph (1) of what has been amended to subsection g. authorize the director to extend the deadline for contracting units to retain a qualified purchasing agent  in the event that a sufficient number of courses are not available to enable contracting units to comply with the bill’s requirement.     Amendments to paragraph (2) of what has been amended to subsection g. provide that a contracting unit may temporarily fill a vacancy in the position of purchasing agent with someone who is not a qualified purchasing agent.